Harihara Mahapatra, a Mumbai-based billionaire, and his wife Preeti have announced a Rs 1,100 crore investment in the cash-strapped SpiceJet. The airline announced in an exchange filing on Tuesday that Harihara Mahapatra and Preeti Mahapatra, proprietors of the Mumbai-based group Mahapatra Universal Limited, will jointly own 21.98 percent (1.99 percent and 19.99 percent, respectively) of the airline.
The announcement came just hours after the low-cost carrier indicated interest in acquiring Go First, which is under insolvency proceedings before the National Company Law Tribunal. Following due diligence, the airline stated that it will make an offer to Resolution Professional.
"Please note that SpiceJet Ltd…has expressed interest with the Resolution Professional of Go First and wish to submit an offer post diligence, with a view to creating a strong and viable airline in a possible combination with SpiceJet," the company stated in its filing.
Go First, which has been grounded since May due to financial difficulties compounded by Pratt & Whitney engine problems, operates a fleet of 54 Airbus SE A320neos.
SpiceJet announced last week that several high-net-worth individuals will invest over Rs 2,000 crore in it through 130 million convertible warrants and 320.8 million fresh equity shares, reducing CMD Ajay Singh's current shareholding in the airline from 56.49 percent to at least 38.55 percent, according to the Economic Times.
Hariahara Mahapatra and his wife Preeti are the promoters of Mahapatra Universal Limited, a global conglomerate with five companies in eleven industries.
Manufacturing, engineering, infrastructure, information and technology, consumer and retail, financial services, healthcare, sports, media, and entertainment are all areas where the corporation has a presence.
